Assessment of Smart Manufacturing Readiness for Small and Medium Enterprises in the Indian Automotive Sector

Maheshwar Dwivedy (), Deepak Pandit and Kiran Khatter ()
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Maheshwar Dwivedy: School of Engineering & Technology, BML Munjal University, Gurgaon 122413, India
Deepak Pandit: School of Management and i2E, BML Munjal University, Gurgaon 122413, India
Kiran Khatter: School of Engineering & Technology, BML Munjal University, Gurgaon 122413, India

Sustainability, 2025, vol. 17, issue 18, 1-46

Abstract: This study evaluates the degree to which small and medium sized enterprises (SMEs) are prepared to adopt smart manufacturing in contrast to large enterprises, a transition that depends on the effective use of the Internet of Things, artificial intelligence (AI), and advanced analytics. While many large multinational companies have already integrated such technologies, smaller firms still struggle because of tight budgets, limited technical expertise, and difficulties in scaling new systems. To capture these realities, the investigation refines the Initiative Mittelstand-Digital für Produktionsunternehmen und Logistik-Systeme (IMPULS) Industry 4.0 readiness model, which was initially developed to help German SMEs, so that it aligns with the circumstances faced by smaller manufacturers. A thorough review of published work first surveys existing readiness and maturity frameworks, highlights their limitations, and guides the selection of new, SME-specific indicators. The framework gauges readiness across six dimensions: strategic planning and organizational design, smart factory infrastructure, lean operations, digital products, data-driven services, and workforce capability. Each dimension is operationalized through a questionnaire that offers clear benchmarks and actionable targets suited to the current resources of each enterprise. Weaving strategic vision, skill growth, and cooperative support, the approach offers managers a direct path to sharper competitiveness and lasting innovation within a changing industrial landscape. Additionally, a separate Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis is provided for each dimension based on survey data offering decision-makers concise guidance for future investment. The proposed adaptation of the IMPULS framework, validated through empirical data from 31 SMEs, introduces a novel readiness index, diagnostic gap metrics, and actionable cluster profiles tailored to developing-country industrial ecosystems.

Keywords: SMEs; smart manufacturing; digital transformation; readiness model; IMPULS model; technological adoption; maturity assessment; data-driven services (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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